Exam Details

  • Exam Code
    :CPA-TEST
  • Exam Name
    :Certified Public Accountant Test: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, Regulation
  • Certification
    :AICPA Certifications
  • Vendor
    :AICPA
  • Total Questions
    :1241 Q&As
  • Last Updated
    :Jun 30, 2025

AICPA AICPA Certifications CPA-TEST Questions & Answers

  • Question 861:

    Tracing shipping documents to prenumbered sales invoices provides evidence that: A. No duplicate shipments or billings occurred.

    B. Shipments to customers were properly invoiced.

    C. All goods ordered by customers were shipped.

    D. All prenumbered sales invoices were accounted for.

  • Question 862:

    Which of the following internal control procedures most likely would deter lapping of collections from customers?

    A. Independent internal verification of dates of entry in the cash receipts journal with dates of daily cash summaries.

    B. Authorization of write-offs of uncollectible accounts by a supervisor independent of credit approval.

    C. Segregation of duties between receiving cash and posting the accounts receivable ledger.

    D. Supervisory comparison of the daily cash summary with the sum of the cash receipts journal entries.

  • Question 863:

    An entity with a large volume of customer remittances by mail could most likely reduce the risk of employee misappropriation of cash by using:

    A. Employee fidelity bonds.

    B. Independently prepared mailroom prelists.

    C. Daily check summaries.

    D. A bank lockbox system.

  • Question 864:

    Which of the following controls most likely would be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?

    A. Employees responsible for authorizing sales and bad debt write-offs are denied access to cash.

    B. Shipping documents and sales invoices are matched by an employee who does not have authority to write off bad debts.

    C. Employees involved in the credit-granting function are separated from the sales function.

    D. Subsidiary accounts receivable records are reconciled to the control account by an employee independent of the authorization of credit.

  • Question 865:

    Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded?

    A. The billing department supervisor sends copies of approved sales orders to the credit department for comparison to authorized credit limits and current customer account balances.

    B. The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly.

    C. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers.

    D. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal.

  • Question 866:

    Tracing bills of lading to sales invoices provides evidence that:

    A. Shipments to customers were recorded as sales.

    B. Recorded sales were shipped.

    C. Invoiced sales were shipped.

    D. Shipments to customers were invoiced.

  • Question 867:

    The information below was taken from the bank transfer schedule prepared during the audit of ABC Co.'s financial statements for the year ended December 31, 20X1. Assume all checks are dated and issued on December 30, 20X1.

    Which of the following checks illustrate deposits/transfers in transit at December 31, 20X1?

    A. #101 and #202.

    B. #101 and #303.

    C. #202 and #404.

    D. #303 and #404.

  • Question 868:

    The information below was taken from the bank transfer schedule prepared during the audit of ABC Co.'s financial statements for the year ended December 31, 20X1. Assume all checks are dated and issued on December 30, 20X1.

    Which of the following checks might indicate kiting?

    A. #101 and #303.

    B. #202 and #404.

    C. #101 and #404.

    D. #202 and #303.

  • Question 869:

    Which of the following most likely would be detected by an auditor's review of a client's sales cut-off?

    A. Shipments lacking sales invoices and shipping documents.

    B. Excessive write-offs of accounts receivable.

    C. Unrecorded sales at year-end.

    D. Lapping of year-end accounts receivable.

  • Question 870:

    An auditor should trace bank transfers for the last part of the audit period and first part of the subsequent period to detect whether:

    A. The cash receipts journal was held open for a few days after the year-end.

    B. The last checks recorded before the year-end were actually mailed by the year-end.

    C. Cash balances were overstated because of kiting.

    D. Any unusual payments to or receipts from related parties occurred.

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